Types of Business Ownership Quiz

What type of corporation can sell unlimited shares to the general public and is heavily regulated by the government?

• S Corporation (S Corp)

• C Corporation (C Corp)

• Limited Partnership

• Limited Liability Company (LLC)

What is the legal responsibility of an individual (or entity) for business actions, debts, and obligations?

• Unlimited Liability

• Limited Liability

• Consolidation

• Liability

What type of business structure is a hybrid that combines the operational characteristics of a sole proprietorship or partnership while limiting the liability of the investors to the amount they invested?

• General Partnership

• Sole Proprietorship

• Limited Partnership

• Limited Liability Company (LLC)

What is the main characteristic of a Joint Venture?

• Unlimited liability for all partners

• Pooling resources for a specific task

• Operating under a franchisor's brand name

• Selling unlimited shares to the public

What type of business is owned by two or more people and has unlimited liability for all partners?

• General Partnership

• Limited Liability Partnership (LLP)

• Limited Partnership

• Sole Proprietorship

What is the purpose of a Benefit Corporation (B Corp)?

• Including public benefit in decisions

• Maximizing shareholder value

• Avoiding double taxation

• Selling a specific line of products

What is the main characteristic of a Piggyback Franchise?

• Pooling resources for a specific task

• Selling low quality products

• Collecting large up-front fees

• Operating inside a larger 'host' facility

What is the main characteristic of a Non-Profit Corporation?

• Reporting financial information to the public

• Having unlimited liability for all partners

• Selling its stock to the general public

• Serving a public service and getting special tax treatment

What is the main characteristic of a Limited Liability Partnership (LLP)?

• All partners have limited liability

• Pooling resources for a specific task

• All partners have decision-making power

• Selling a specific line of products

What is the main characteristic of a Multi-Level Marketing business?

• Having unlimited liability for all partners

• Pooling resources for a specific task

• Individuals make commissions from sales made by their network of recruited distributors

• Selling a specific line of products